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GVK Power & Infrastructure secures investment of Rs 7614 crore in its airports holding company

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Capital Market
Last Updated : Oct 28 2019 | 11:50 AM IST
GVK Power & Infrastructure announced that GVK Airport Developers (GVKADL) and GVK Airport Holdings (GVKAHL) subsidiaries of the company, have on 27 October 2019 entered into definitive agreements with subsidiaries of the Abu Dhabi Investment Authority (ADIA), Public Sector Pension Investment Board (PSP Investments) and with National Investment & Infrastructure Fund (NIIF) (each an Investor and collectively Investors), whereby the Investors will make an aggregate investment of Rs 7,614 crore, into GVKAHL (Transaction).

GVKAHL, is the holding company of Mumbai International Airport (MIAL) and engaged in the business of developing, operating and managing the Chhatrapati Shivaji Maharaj International Airport (CSMIA) and development of Navi Mumbai International Airport (NMIA) through MIAL's subsidiary Navi Mumbai International Airport (NMIAL).

Proceeds from the above Transaction will be used by GVK to primarily retire debt obligations of its holding companies significantly and fund the purchase of additional shares in MIAL by GVKAHL from Bidvest and ACSA in accordance with the Right of First Offer already exercised by GVKAHL. The Transaction closure is subject to satisfactory completion of closing conditions including regulatory / third party approvals and lender consents.

With this Transaction, MIAL and NMIAL will also benefit from the backing of global infrastructure investors as both airports embark on the next growth phase that would lead to unlocking significant value through real estate development in MIAL and the development of the NMIA.

As per the terms of the proposed Transaction, upon completion, GVKAHL will have four shareholders - GVKADL, ADIA, PSP Investments and NIIF.

Dr. GVK Reddy will continue as Executive Chairman and G V Sanjay Reddy as Managing Director in both MIAL and NMIAL. Krishna R. Bhupal will continue as the Director of MIAL and also Executive Director of NMIAL. Both airports will continue to be branded as GVK Airports. Upon completion of the Transaction, GVKADL will hold 20.9% in GVKAHL and the balance will be equally shared between the Investors.

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First Published: Oct 28 2019 | 11:24 AM IST

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